International auditing standards and their classification. International Standards on Auditing and Their Importance in International Auditing Practice

Like any other activity related to such an important area of ​​life of any enterprise as its financial condition, it is subject to strict regulation in order to exclude the possibility of poor-quality auditing. It is also important that today, in the age of rapid globalization and internationalization of the economic life of the whole world, audits in all countries are carried out according to the same scheme. This is especially important for those who consist of many branches scattered around the world. It was in order to unify the process of conducting that international audit standards were adopted.

What are they? International Auditing Standards are special documents that contain the requirements for conducting audits of the financial condition of enterprises. These standards are issued by the International Federation of Accountants and are widely used throughout the world. First of all, the most famous and largest users of ISAs are representatives of the so-called "Big Four", which includes Ernst & Young, PriceWaterHouseCoopers, KPMG and Deloitte. Since these audit firms are transnational companies, in their activities they take international auditing standards as the main guide to action.

However, it is worth noting that the ISA is used not only by representatives of the Big Four. The fact is that international and national auditing standards are closely related, and most countries create their own standards based on international experience. This allows you to further unify inspections and provide the most standardized audit anywhere in the world.

The classification of international auditing standards is their division into certain categories in accordance with a certain sign of classification. Usually in the classification there is only one sign - the logical stage of the audit, which is related to one or another standard. That is why international auditing standards are divided into the following categories:

Introductory aspects - give an idea of ​​the conceptual foundations of the audit and the conduct of the audit;

Responsibilities - disclose all the obligations of the auditor to the customer, regulate the conclusion of contracts for the audit, pay attention to the inadmissibility of disclosure by the auditor of the information received in the client's company;

Planning - international audit standards of this category give an idea of ​​​​drawing up an audit plan, taking into account risks, materiality and some other points that are important for;

Internal control system - explains how to analyze the accounting system and firms.

Audit evidence - international auditing standards regarding evidence are one of the most important, since they regulate which documents can be accepted by the auditor as evidence of a particular operation, and are also ranked according to the degree of reliability;

Using the services of third parties - explain in which cases the auditor has the right (or even the obligation) to resort to the help of outsiders during the audit;

And conclusions - regulate the mandatory points and the conclusion that will be presented at the end of the audit to the management of the enterprise;

Specialized areas of audit - provide information about audits in highly specialized areas;

Related services - regulate the list of additional services that an audit firm can provide.

Auditing standards are divided into international (ISA) and national. International Standards on Auditing (ISA) - international professional standards for the implementation of audit activities. They are issued by the International Federation of Accountants through the International Auditing and Assurance Standards Committee. ISA is a relatively new independent course, the emergence of which is due to the process of reforming the accounting system in Russia, the transition of domestic accounting practices to international accounting and reporting standards.

As a result, there was a need for knowledge of international auditing standards. The development of auditing in our country and the adoption of the Federal Law "On Auditing" necessitated a revision of the audit rules available in our country in order to transform them into regulatory documents of the Federal level. The legislation provides for the creation of internal rules (standards) by professional audit associations. Today, when licensing audit organizations, special attention is paid to the quality of services, which is impossible without standardization.

In this regard, interest in audit methodology has increased and the need for audit professionals to master international auditing standards and provisions on international audit practice has increased. The International Federation of Accountants, which organizes the work on the formation and implementation of international financial reporting and auditing standards, is doing a lot of work to improve the methodological work in the field of audits and the provision of related services. The study of international auditing standards is intended to help specialists of audit firms competently organize their work and improve its quality in order to more fully meet the needs of society for reliable information about the financial condition and results of economic activity of audited companies.

Based on international standards in Russian Federation Federal Rules (Standards) of Auditing Activities have been developed to regulate auditing activities on its territory. The significance of the standards is that they - ensure the high quality of the audit; – promote the introduction of new scientific achievements into audit practice and help users understand the audit process; – eliminate the need for government control; - help auditors to negotiate with the client; - provide a link between individual elements of the audit process; - force auditors to constantly improve their knowledge and skills; - provide comparability of the quality of work of individual audit organizations; - streamline and facilitate audit work.

However, the audit rules are not detailed rules and regulations covering all audit work. They contain clear and concise summaries of the principles of auditing, as well as those established professional norms and rules that have proven their usefulness and strength in the course of auditing, supported by the experience of a huge number of auditors in different countries peace.

These standards subsequently received an international calling. The audit rules (standards) and norms can be used by legal authorities as a guide, a guideline when considering the competence and work of the auditor.

In the 70s, under the leadership of the International Federation of Accountants, in order to improve the quality and unify the procedure for conducting audits around the world, the development of international auditing standards began, publishes international audit Council on International Standards on Auditing and Quality Assurance. International standards have a dual purpose: 1. to promote the development of the auditing profession in countries where the level of professionalism does not correspond to the global level; 2. to unify auditing on an international scale. International Standards apply to the extent they exist, so in exceptional circumstances the auditor may deem it necessary to deviate from International Standards. This must be reasoned by the auditor. International auditing standards are divided into 7 groups: 1. introduction - the group is intended to determine general conditions or the main audit activity and currently this group of standards is not valid (100-199)2. general principles and responsibilities (200-299) - the objectives and principles of the audit, as well as the circumstances in which certain responsibilities are assigned to the auditor and management of the audited entity. audit, understanding the business of the enterprise, its environment, risk assessment, determining the level of materiality. 4. Audit evidence (500-599). These standards provide examples of verification procedures. These standards state that the auditor must obtain sufficient relevant evidence to enable a reasonable audit opinion to be drawn. They regulate the procedure for the auditor's work with the information of 3rd persons. 6. audit conclusions and conclusions (700-799). The provision of these standards establishes the rules for the formation of audit conclusions and the preparation of an audit report. 7.special areas of audit (800-899) preparation of financial statements, the procedure for its provision. In accordance with accounting fundamentals that are different from international and national standards. The data of the standard determine the procedure for compiling and submitting a report on special audit assignments. 8. (1000-1999)

23. Intracompany auditing standards.

After preliminary negotiations and p / d the conclusion of the contract in accordance with the federal standards A of the activity “Agreement of the conditions for conducting A” and intra-company standards. According to the condition of conducting A, a letter on conducting A is drawn up, this document is sent to a client and signed by the client's management in case of agreement with the main conditions of the assignment for conducting A. If A checks of this client are repeated for several years, then A org can make a decision without compiling each time a new letter on carrying out A..At the end of the work done, if the conditions are agreed with the client, a contract is concluded for conducting an A check

Such standards are developed by major audit firms and are their intellectual property. The presence of intra-company standards facilitates audit work, improves its quality and unifies the working documentation of the company.

Intracompany auditing standards may consist of separate blocks, including standards for the internal structure of the company, organization of its activities, standards for checking the legal support of the client's activities, standards for auditing in separate sections, standards for checking economic entities with common features (small businesses, enterprises with foreign investments), standards for checking enterprises of certain industries and areas of activity.

Standards for conducting audits for individual sections include: a questionnaire or tests for the relevant section; a list of audit procedures and the sequence of their implementation;

typical test scheme:

1. List of regulatory documents.

2. Composition of primary documents.

3. Registers of analytical accounting.

4. Registers of synthetic accounting.

5. Forms, articles and tables of financial statements, which reflects the indicator being checked.

6. Description of alternative solutions, if any.

7. Classifier of possible violations.

One of the main criteria for evaluating the use of standards by auditors is the correctness of the development and application of internal audit rules by them. These documents, accepted and approved by the auditors in order to ensure the effectiveness practical work and its adequacy to national audit standards, are designed to regulate the requirements for its implementation and execution. Internal standards may provide additional framework for resolving conflicts that are possible between employees and the administration of an audit firm, auditors and clients, auditors and regulatory authorities. The internal rules define uniform requirements for the procedure for conducting an audit and its quality, and, if they are observed, create an additional level of guarantee of the results of the audit. These may include instructions adopted and approved by the organization, methodological developments, manuals and other documents that reveal the internal approaches of the company to the implementation of the audit.

FPSAD provided greater independence to auditors in solving individual problems during the audit. Many issues can be settled by audit organizations and individual auditors on their own and fixed by them in the internal audit rules. However, these rules should not contradict the FPSAD and their requirements cannot be lower than the requirements of federal and internal rules (standards) of the audit activity of a professional audit association, of which they are members (Federal Law No. 164-FZ).

In this regard, it seems to us that auditors and audit firms need an internal set of standards that define the approach to auditing. The use of internal standards contributes to improving the quality of the audit, the effectiveness of its results, reduces the complexity of work, allows the use of new technologies and verification methods in audit practice.

Internal auditing standards provide a unified approach to auditing in a given audit firm, which (in one form or another) includes the following elements.

Preliminary review stage: 1) definition of the objectives of the agreement for reasonable and optimal planning; 2) an overview of the client's business; 3) an assessment of the degree of possible risk of fraud and common errors and an assessment of their significance; 4) an assessment of the internal control system to develop an audit strategy.

Working stage: 5) determination of the audit strategy and necessary procedures; 6) extended assessment of the effectiveness of the control system, development of an audit plan; 7) drawing up an independent survey plan; 8) conducting independent surveys. The final stage: 9) completion of the audit; 10) presentation of the conclusion.

Internal standards in accordance with the Rule (standard) of audit activity "Requirements for internal standards of audit organizations" and international experience for their purpose can be combined into the following groups: - standards containing general provisions on audit; - standards establishing the procedure for conducting an audit - standards that establish the procedure for the formation of conclusions and opinions of auditors; - specialized standards; - standards that establish the procedure for providing audit-related services; - standards for education and training. Consider the standards that establish the procedure for conducting an audit. In them, auditors reflect their approach to audit planning, the procedure for studying and evaluating the internal control system, obtaining audit evidence, determining the level of materiality, assessing audit risk, etc.

The main stages of audit planning are clearly defined in the relevant FPSAD No. 3 “Audit Planning”. When preparing an intracompany standard, auditors can more clearly present their actions at each stage of planning, including when obtaining knowledge about the financial and economic activities of an economic entity, which will be in demand both in the preparation of a general plan and program, and in the direct implementation of audit procedures. It is advisable for an audit firm in its internal documents to prepare in advance a possible plan and audit program, providing for the possibility of adjustment depending on the characteristics of the activities of the audited economic entities. Having reflected in the plan and program the maximum possible list of types of work and procedures, auditors can leave only suitable procedures for a specific audit, supplementing them with special actions that are specific only to the audited client. Separate provisions of the general plan and program may be agreed with the head of the economic entity.

When determining the procedure for studying and evaluating the internal control system in internal standards, auditors need to establish the number of stages, which, in accordance with the requirements of paragraph 5.1 of the PSAD “Studying and evaluating accounting and internal control systems during the audit”, cannot be less than three: general familiarity with system, an initial assessment of its reliability and confirmation of the reliability of the assessment (if necessary, auditors have the right to decide on the use of more stages).

When creating an internal standard, auditors need to keep in mind that forming an overall impression of an internal control system requires taking into account its components, i.e. an appropriate accounting system, control environment and individual controls. Finding out the reliability of each of them will allow us to evaluate the system as a whole.

Intracompany rules should also reflect the approach of the audit firm to determine the level of materiality. Possible options for its calculation are contained in FPSAD No. 4 “Materiality in Audit”, however, this internal standard of audit organizations is one of the most important. First of all, this is due to the need for the auditors to form and present in a certain form an opinion based on the results of the audit, containing an opinion on the reliability of the client's reporting data. As you know, the validity of reporting indicators should not be established by the auditor with absolute accuracy (it should be reliable in all material aspects). At the same time, difficulties arise in finding criteria for classifying misstatements as material. Auditing firms are trying to solve this problem by developing an appropriate internal rule.

The use of proven methods allows minimizing audit risk and conducting audits in a shorter time. For their development in an audit firm, a methodological council consisting of leading experts can be created. Intra-company standards can cover a wide range of issues - from methods for checking specific issues and directions in the field of accounting and taxation of economic entities to general issues of organizing audit work in a company.

Internal standards are subject to mandatory approval by the head of the audit organization. To ensure control over their compliance, the need to apply these rules should be part of the functional responsibilities of the auditor.

Auditing standards are uniform basic principles to be followed by auditors in the process of professional auditing. They establish uniform requirements for the procedure for carrying out audit activities, the design and assessment of the quality of an audit and related services, as well as for the procedure for training auditors and assessing their qualifications. The standards are essential for the training of auditors within firms and can also be used to protect the auditor in litigation.

There are four groups of standards:

• international auditing standards. They fix the requirements for auditing in different countries. Their requirements are mandatory when conducting an audit of transnational companies;
• national standards;
• · internal rules(standards) of auditing activities in force in professional audit associations, as well as the rules (standards) of auditing activities of audit organizations and individual auditors.
• Intracompany standards.

Auditing standards regulate the professional activities of auditors and are widely recognized throughout the world, as they allow achieving the greatest objectivity in expressing an audit opinion on the compliance of financial statements with generally accepted principles of accounting and financial reporting, and also establish uniform qualitative criteria for comparing audit results. The uniformity of audit activity is its necessary condition due to the variety of methods used in audit practice, and the complexity of their comparison.

With the development of transnational corporations, integration and the transformation of audit firms into large international groups, it became necessary to unify auditing on an international scale. Problems in the field of auditing are almost the same all over the world, therefore, professional organizations in a country that solve the next audit problem, first of all, study the solution to it in other organizations that develop auditing standards.

Development professional requirements The International Federation of Accountants, established in 1977, is involved in auditing at the international level. Within the framework of the International Committee on Auditing Practice, acting as a standing autonomous committee, it publishes international standards on auditing, which have a dual goal: to promote the development of the auditing profession in those countries in which which the level of professionalism of auditors is lower than the global one, and to unify, as far as possible, the attitude to audit on an international scale.

The importance of this publication in modern Ukrainian conditions can hardly be overestimated. Experts do not stop arguing about how audit is developing, whether the pace of such development is sufficient, whether the principles of audit generally recognized in world practice are taken into account, whether we are going in the right direction. Very often, the debaters appealed to international standards, which almost no one could read, since they existed only in English, and they could only be obtained from abroad. At the same time, over the past few years, domestic regulatory documents have been developed and published, called the Rules (Standards) of Auditing. These rules (standards) also caused an ambiguous reaction among practicing auditors: someone accepted them, someone categorically rejected them.

International Standards on Auditing apply to any independent audit and, as appropriate, may also be applied by auditors in their related activities. However, these standards do not take precedence over local regulations in a given country governing the provision of audit and other related services in the field of financial information.

In addition to general auditing standards, there are special standards and norms that regulate the stages and areas of audit activity - standards and norms for forecasts and plans, ethics standards, etc.

The International Committee on Auditing Practices, on behalf of the Council of the International Federation of Accountants, has issued auditing standards, consisting of international standards for auditing and standards for the provision of related services.

Auditing standards formulate uniform international fundamental prescriptions that define standards for the quality and reliability of an audit and provide certain guarantees for the results of an audit if they are observed.

The International Committee on Auditing Practices has issued auditing standards, consisting of international standards and standards for the provision of related services.

International Standards on Auditing (ISA) are of interest to Russian accountants for several reasons. Firstly, many domestic enterprises oriented towards foreign investors are already experiencing the need for an audit in accordance with ISA. Accountants of such organizations need to be aware of the obligations of the parties and the most significant features of international audit technologies. Secondly, it should be emphasized that it is international regulatory documents that form the basis for the development of domestic federal regulations(standards) of auditing, which is confirmed by the existing Russian standards, which practically reproduce the provisions of several ISAs.

Familiarization with the full set of international auditing standards (in the format of a brief analytical review) will allow domestic accountants to get a holistic picture of what rules will determine their relationship with auditors as accounting and auditing continue to advance and new internationally oriented federal rules (standards ) audit activities.

International Auditing Standards cover a wide range of issues governing audit procedures and the relationship of auditors with management and accountants of client companies. They open with an introductory section containing two standards:

• * 100 “Assurance Tasks”;
• * 120 “Basic Principles of International Auditing Standards”.

ISA 100 is one of the newest international documents, which is developed taking into account the latest trends in modern accounting and auditing. ISA 100 and ISA 120 define the level of assurance that auditors should provide regarding the conclusions presented to clients based on the results of performance various kinds works.

The second section of the ISA - "Responsibilities" - has seven standards:

• * 200 “Purpose and general principles governing the audit of financial statements”;
• * 210 “Terms of audit assignments”;
• * 220 “Quality control of work in audit”;
• * 230 “documentation”;
• * 244 “The Auditor's Responsibility for Considering Fraud and Error in an Audit of Financial Statements”;
• * 250 “Taking into account laws and regulations in the audit of financial statements”;
• * 260 “Communication of aspects of the audit to those charged with governance”.

ISA 200, The Objective and General Principles Governing an Audit of Financial Statements, lists independence, integrity, objectivity, professional competence and due diligence, confidentiality, professional conduct, and adherence to technical standards as core audit principles.

ISA 210 “Terms and Conditions of Audit Engagements” describes the data that auditors must provide to the client in relation to the forthcoming provision of audit services. It is necessary to bring to the attention of the client information about the goals and scope of the audit, the principles for calculating the fee, the responsibility of the parties, planning the audit, the requirement for free access to the client's accounting records. In addition, issues such as the involvement of internal auditors, external experts, etc. may be raised.

ISA 220 “Quality control of audit work” is devoted to the organization of such control within the audit firm (the topic of external quality control is not covered here). Auditing firms are required to apply a personnel policy aimed at staffing its staff with competent and experienced employees who can ensure that the tasks assigned to them are carried out with due diligence.

ISA 230, Documentation, requires auditors to record in writing the aspects of the audit necessary to provide a common understanding of the audit performed. So, the following should be documented: the audit plan and program, as well as any changes to them; the schedule, scope and results of the procedures, as well as the conclusions drawn from the data obtained.

The ISA leaves it up to the auditors to decide on the scope of the documentation in each particular case. The form and content of audit working papers are influenced by such factors as the nature and complexity of the client's business, the structure and state of accounting, techniques and methods for conducting audit procedures, etc. The working papers include, in particular:

ü information about the industry, economic and legal environment in which the audited company operates;

b information regarding organizational structure companies;

ь evidence of auditors' study of the client's accounting and internal control systems and determination of the level of audit risk;

ь records on the nature and extent of the audit procedures performed (indicating their performers, timing and results obtained);

ь data on the subsequent quality control of the work performed;

ь copies of correspondence with colleagues and third parties on audit matters;

ь written statements received from the responsible persons of the audited company;

ü copies of the financial statements and the auditor's report.

According to ISA, working papers are the property of the auditors. At the discretion of the latter, part of the documents or excerpts from them may be provided to the client. Auditors are required to ensure the confidentiality of the information contained in the working documentation.

ISA 240, The Auditor's Responsibility for Dealing with Fraud and Error in an Audit of Financial Statements, is one of the most recent international instruments. It obliges auditors to take into account the possibility of material misstatement in the financial statements and to be guided by the principle of professional skepticism when conducting an audit.

It is important to emphasize that if the auditors do not detect any fraud or error, the ISAs do not consider this fact sufficient to recognize the audit as not complying with international standards or due diligence requirements. Auditors are required to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. However, auditors cannot be held responsible for ensuring that fraud and accounting errors are excluded from the client.

ISA 250, Accounting for Laws and Regulations in an Audit of Financial Statements, actually aligns with the previous standard in that it focuses on misstatements in financial statements—this time due to non-compliance by the client with the law. In accordance with ISAs, auditors must achieve an understanding of the key legal and regulatory requirements applicable to the activities of the company being audited.

ISA 260, Communication of Audit Matters to Those Equipped with Governance, provides auditors with the opportunity to use professional judgment to determine who should communicate audit matters of interest to the management of the auditee. This takes into account the management structure of the company, the legal obligations of responsible employees, as well as the obligations of the procedures performed by the auditors. In some cases, the circle of persons to be informed can be directly agreed with the client.

The third section of the international standards “Planning” consists of three documents:

• * 300 "Planning";
• * 310 Business Knowledge;
• * 320 “Audit Materiality”.

ISA 300, Planning, requires auditors to conduct their audit effectively and in a timely manner. To achieve this objective, the audit must be carefully planned taking into account the specifics of the client's business, the anticipated risks of material misstatement in the financial statements, as well as taking into account the personnel requirements and the time frame of the audit. Planning involves drawing up a general audit plan and a verification program specifying it.

ISA 310 Business Knowledge requires auditors to obtain sufficient knowledge of the activities of the entity being audited to identify and understand the events, transactions and practices that may affect the formation of the entity's financial statements.

It should be noted that auditors should start studying the company's business even before concluding an agreement with a client. This is necessary in order to determine whether it is possible to provide this client with the appropriate service at a sufficiently high level.

SA 320, Audit Materiality, reserves the right for auditors to exercise their professional judgment in assessing which misstatements in the financial statements are to be considered material. At the same time, the nature and quantitative value of distortions are taken into account.

The fourth section of the International Auditing Standards “Internal Control” includes three documents:

• * 400 “Risk assessment and internal control”;
• * 401 “Audit in the environment of computer information systems”;
• * 402 “Taking into account in the audit of the characteristics of entities using service organizations”.

In ISA 400, audit risk refers to the risk of an auditor expressing an inappropriate audit opinion when the financial statements contain material misstatements.

ISA 401 affects not only the features of the assessment of internal control in the context of electronic accounting systems. The ISA requires the auditor to know information technologies to understand the impact they have on the client's accounting and verification process. The ISA recognizes that an auditor's competence may not be the sum of the knowledge of a professional computer systems specialist. If necessary, one may be involved to assist the auditors as a technical expert.

ISA 402 is of less interest to domestic accountants. It is focused exclusively on auditors and is devoted to a rather narrow issue - the peculiarities of checking those companies that use the services of a third-party organization for record keeping. The standard contains instructions on obtaining information about the specifics of such services, the terms of the contract, the competence of the service organization, etc.

Section 5 of the ISA, “Audit Evidence,” is the most voluminous. It has 11 documents:

• * 500 “Audit evidence”;
• * 501 “Audit evidence - additional consideration of special items”;
• * 505 “External confirmations”;
• * 510 “Primary tasks - opening balances”;
• * 520 “Analytical procedures”;
• * 530 “Audit sampling and other sampling procedures”;
• * 540 “Audit of estimated values”;
• * 550 “Related parties”;
• * 560 “Following events”;
• * 570 “Business continuity”;
• * 580 "Management statements".

ISA 500 characterizes the concept indicated in the title of the standard as information received by auditors and conclusions drawn from it. Audit evidence is collected during tests of controls (when studying the organization and effectiveness of the client's accounting and internal control systems), as well as during substantive procedures (the latter include detailed tests business transactions and balance of accounts, as well as analytical procedures aimed at studying the ratio of financial and economic indicators of the company).

ISA 501 specifies the procedure for performing a number of audit procedures. We are talking about the presence of auditors in the inventory of inventory; obtaining information about claims and court cases in which the audited company is involved; consideration of significant long-term investments and their valuation; and the analysis of segment information material to the client's financial statements.

ISA 505 governs the development and distribution of requests to obtain data from third parties. This International Standard obliges auditors to evaluate the reliability of confirmations received from third parties, taking into account the independence of the respondent, the level of his competence and authority.

ISA 510 requires auditors visiting a client for the first time or who have not performed an audit in a previous period to ensure that:

ь opening balances do not contain misstatements that could materially affect the financial statements of the current period;

ь closing balances of the previous period are correctly transferred to the beginning of the current period or, if necessary, changed;

ь the sequence of application of accounting policies is observed, or changes in accounting policies are properly reflected in accounting.

ISA 520 notes the appropriateness of applying procedures during the audit, including:

ь comparison of indicators of the current and previous periods;

ь comparison of actual indicators with forecasts;

ь assessment of the performance of the audited company in the context of industry statistics;

ь consideration of the relationship between the financial indicators of the current period, as well as between financial and other information (for example, between labor costs and the number of employees).

ISA 530 draws attention to the selection of items to be reviewed; features of sample formation and assessment of distortions identified in the sample study. Auditors should consider not only the misstatements identified in the sample, but also the foreseeable misstatements and their cumulative effect on the reliability of the financial information under consideration.

ISA 540 regulates the procedure for considering accounting items that use estimated measurement methods. In this complex process, auditors may resort to:

l consideration of the assumptions and data underlying the estimates;

b verification of the techniques and methods used in the calculation of estimated values;

l comparing previous assessments with actual results;

Seek data outside the company if necessary to ensure that estimates are realistic.

ISA 550 is of particular interest to companies that are part of a holding, have subsidiaries or act as such in relation to the parent organization. Not only related party transactions are the focus of auditors; the very existence of such parties in the audited company is subject to clarification during the audit. To identify related parties, in particular, unusual transactions are analyzed; services provided free of charge; transactions involving conditions that differ materially from those on the market (non-standard interest rates, prices, guarantees, etc.).

ISA 560 indicates the need to consider the effect on the auditor's report of events occurring up to the date the report is issued. As close as possible to this date, the minutes of meetings of the Board of Directors, meetings of shareholders, as well as the most recent financial information, should be familiarized.

ISA 570 primarily affects audited companies that are experiencing significant commercial difficulties or are on the verge of a crisis. During the audit, the auditors should consider whether the preparation of financial statements is reasonable based on the ability to continue business for at least the next 12 months. If the auditors have doubts about this, then the chief accountant and the company's management should be ready to present to the auditors plans for the company's future actions. The auditors evaluate these plans to see if they are realistic and can be corrected.

ISA 580 describes the procedure for interaction between the auditor and the management of the audited company in connection with obtaining clarifications from them. The procedure for interaction between auditors and company management may include:

ь sending the auditor's letter to management, which contains information that requires confirmation from the company's management;

l a summary by the auditor of the results of conversations with the management of the audited company;

l attaching to the audit evidence the minutes of meetings of the Board of Directors or a copy of the financial statements signed by management.

Section 6 of the ISA, Use of the Work of Third Parties, includes three standards:

• * 600 “Using the work of another auditor”;
• * 610 “Review of the work of internal audit”;
• * 620 “Using the work of an expert”.

ISA 600 contains important information for companies with a branched structure that engage different audit firms to audit the parent organization and to verify the financial statements of the partner whose data are included in the accounts of the parent organization. The ISA describes the procedure for cooperation between two audit firms, the interaction of which may include discussing audit procedures, reviewing the working papers of another auditor by the chief auditor, exchanging information on significant aspects and results obtained, and conducting additional tests.

ISA 610 is of interest to a wide range of companies that have their own internal audit service. The ISA requires the external auditor to understand the organization, the scope of responsibilities and the level of competence of internal audit. This is essential for effective audit planning.

ISA 620 describes the circumstances in which an outside specialist may be engaged to obtain audit evidence. Such a need arises if an engineering or legal assessment is required, an examination using special techniques and methods, etc.

The seventh section of the ISA “Audit findings and preparation of reports (conclusions)” consists of three documents:

• * 700 “Auditor's report (conclusion) on financial statements”;
• * 710 “Comparable values”;
• * 720 “Other information in documents containing audited financial statements”.

ISA 700 contains requirements for the execution of an auditor's report and characterizes the types of opinion expressed in it. An unqualified opinion is expressed when the financial statements are presented fairly, in all material respects, in accordance with established financial reporting principles.

ISA 710 deals with the verification of:

ь indicators of the previous period, included as part of the financial statements for the current period and intended for comparison with the corresponding information of the current period,

ь comparable financial statements, where information for the previous period is provided for the purpose of comparison with the financial statements of the current period.

ISA 720 requires auditors to read other documents published by the client along with the financial statements. Examples of such documents are a management or board report, a financial review, etc. When there are significant discrepancies, the ISA obliges auditors to discuss with the client the issue of resolving the discrepancies, and as a last resort recommends that auditors seek legal advice.

Scope of this standard

1. This International Standard on Auditing (ISA) establishes the principal responsibilities of the independent auditor when performing an audit of financial statements in accordance with International Standards on Auditing. Thus, it establishes the main objectives of the independent auditor and explains the nature and extent of the audit procedures designed to make it possible for the independent auditor to achieve these objectives. This ISA also clarifies the scope, role and structure of ISAs as a source of law and contains requirements that establish the basic responsibilities of an independent auditor applicable to all audits, including the essential duty to comply with ISAs. Further in the text, the word "auditor" is used to designate the concept of "independent auditor".

2. International Standards on Auditing are set out in the context of the auditor's audit of financial statements. Where they are applied in the course of an audit of other historical financial information, they should be considered on a case-by-case basis as dictated by the circumstances of the particular engagement. International Auditing Standards do not consider those obligations of the auditor that may be established by laws, regulations or other sources of law, for example, in connection with the placement of securities among an indefinite circle of persons. Such responsibilities may differ from those set out in the International Standards on Auditing. Therefore, while certain aspects of the ISAs may be helpful to the auditor in such circumstances, this does not relieve the auditor of the responsibility to ensure that all relevant auditor responsibilities under laws, regulations and professional guidelines are met.

Audit of financial statements

3. The purpose of an audit is to increase user confidence in financial statements. This is achieved by the auditor's expression of an appropriate opinion as to whether the financial statements are prepared, in all material respects, in accordance with the criteria in the applicable financial reporting framework. When applying most of the concepts of preparing financial general purpose This opinion is whether the financial statements are presented fairly, in all material respects, or whether they give a true and fair view in accordance with a particular framework. The auditor's ability to form such an opinion is conditional on the audit being conducted in accordance with International Standards on Auditing and applicable ethical standards (Ref: Para. A1).

4. An entity's auditable financial statements are those prepared by its management under the supervision of those charged with governance over their preparation. International Standards on Auditing does not impose any responsibilities on the management of an organization or on those charged with governance, and does not replace the laws and regulations that establish these responsibilities. However, a fundamental assumption of conducting an audit in accordance with International Standards on Auditing is that the entity's management and, where appropriate, those charged with governance, recognize certain responsibilities that are most significant in the performance of an audit. Such an audit of an entity's financial statements does not relieve its management or those charged with governance of their responsibilities (Ref: Para. A2–A11).

5. International Standards on Auditing require the auditor, in order to substantiate his opinion, to obtain reasonable assurance that the financial statements as a whole are free from material misstatement, whether due to fraud or error. Reasonable assurance is a high level of assurance. It is obtained by the auditor obtaining sufficient appropriate audit evidence to reduce audit risk (that is, the risk that the auditor expresses an inappropriate opinion when the financial statements are materially misstated) to an acceptably low level. However, reasonable assurance is not absolute assurance, because there are inherent limitations in every audit, so that most of the audit evidence on which the auditor draws conclusions and forms the appropriate audit opinion is persuasive rather than conclusive (Ref: Para. A28–A52) .

6. Both in planning and performing the audit, and in evaluating the effect on the audit of identified misstatements and the effect on the financial statements of uncorrected misstatements, if any, the auditor applies the principle of materiality*(1). Generally, misstatements, including omissions, are considered material if, individually or in the aggregate, they can reasonably be expected to influence the relevant economic decisions of users taken on the basis of the financial statements. Judgments about materiality are made in the light of the surrounding circumstances and depend on the auditor's understanding of the financial information needs of particular users of the financial statements, and on the size or nature of any misstatement, or a combination of both. The auditor's opinion relates to the financial statements as a whole, so the auditor is not responsible for detecting misstatements that are not material to the financial statements as a whole.

7. ISAs contain objectives, requirements, guidance for use, and other explanatory material that is intended to help the auditor obtain reasonable assurance. In planning and performing an audit, International Standards on Auditing require the auditor to exercise professional judgment and maintain professional skepticism and:

Identify and assess the risks of material misstatement, whether due to fraud or error, based on an understanding of the entity and its environment, including the entity's internal control system;

Obtain sufficient appropriate audit evidence about the presence or absence of material misstatements by designing and implementing appropriate audit procedures in response to the assessed risks;

Form an opinion on the audited financial statements based on the conclusions obtained from the audit evidence collected.

8. The final wording of the auditor's opinion will depend on the applicable financial reporting framework and any applicable laws or regulations (Ref: Para. A12-A13).

9. With respect to matters arising from the audit, the auditor may also have certain other reporting and reporting responsibilities to users, management, those charged with governance, or to parties external to the entity. These responsibilities may be established by the International Standards on Auditing or by applicable laws or regulations*(2).

Effective date

10 This Standard is effective for audits of financial statements for periods beginning on or after December 15, 2009.

The main objectives of the auditor

11. In conducting an audit of financial statements, the main objectives of the auditor are to:

(a) obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, to enable the auditor to express an appropriate opinion as to whether the financial statements are prepared, in all material respects, as in accordance with the applicable financial reporting framework;

(b) prepare and present an opinion on the financial statements, taking into account the requirements of International Standards on Auditing and in accordance with the auditor's conclusions.

12. Whenever reasonable assurance cannot be obtained and a qualified opinion in the auditor's report is not sufficient in the circumstances to inform the intended users of the financial statements, ISAs require the auditor to disclaim or disclaim an opinion. ) from continuing to perform the audit engagement when withdrawal from the engagement is permitted by applicable law or regulation.

Definitions

13. For the purposes of the International Standards on Auditing, the following terms have the meanings given below.

(a) Applicable financial reporting framework means the financial reporting framework adopted by management and, where relevant, those charged with governance of the entity and used in preparing the financial statements; the concept is appropriate for the nature of the entity and the purpose for which the financial statements are prepared, or its use is required by law or regulation.

The term "fair presentation framework" is used to refer to a framework for preparing financial statements that conforms to the requirements of that framework:

(i) expressly recognizes or implies that the fair presentation of financial statements may require management to disclose more information than is required by the framework, or

(ii) expressly recognizes that management may be required to deviate from the requirements of the framework in order to provide a fair presentation of the financial statements. It is expected that such derogations may be required only in exceptionally rare circumstances.

The term "conformity framework" is used to refer to a financial reporting framework that provides for compliance with that framework, but does not contain the assertions set out in paragraphs (i) or (ii).

(b) audit evidence is information used by the auditor in forming the conclusions on which the auditor's opinion is based. Audit evidence includes both information contained in the accounting records on which the financial statements are based and other information. For the purposes of the International Standards on Auditing:

(i) sufficiency of audit evidence - the quantitative assessment of audit evidence. The amount of audit evidence required depends on the auditor's assessment of the risks of material misstatement, as well as the quality of such audit evidence;

(ii) Appropriateness of audit evidence - a qualitative assessment of audit evidence, that is, its relevance and reliability in support of the conclusions on which the auditor's opinion is based.

(c) Audit risk is the risk that the auditor will form an erroneous audit opinion when financial statements are materially misstated. Audit risk is a function of the risks of material misstatement and detection risk.

(d) Auditor - The person or persons performing the audit, usually the engagement partner or other members of the audit team, or, as appropriate, the organization. When a particular ISA explicitly states that a specific requirement or a specific duty must be fulfilled by the engagement partner, the term “engagement partner” is used rather than the term “auditor”. The terms "engagement leader" and "organization", as appropriate, refer to the public sector equivalents of these terms.

(e) Detection risk is the risk that the auditor's performance of procedures to reduce audit risk to an acceptably low level will not detect an existing misstatement that could be material, individually or when combined with other misstatements.

(f) Financial statements are a structured presentation of historical financial information, including related notes, designed to communicate an entity's economic resources and liabilities at a point in time or changes therein over a period in accordance with a financial reporting framework. The related notes usually contain significant accounting policies and other explanatory information. The term "financial statements" usually refers to a complete set of financial statements as defined by the requirements of the applicable financial reporting framework, but it may be used in relation to a single report within the financial statements.

(g) Historical financial information means information in the form of financial indicators about a particular entity, obtained primarily from its accounting system, about economic events that occurred during past periods, or about economic conditions or circumstances at certain points in the past.

(h) Management - the person or persons with senior management responsibilities responsible for the conduct of an organization's business. For some entities in some jurisdictions, management also includes some or all of those charged with governance, such as executive members of a governing body or an owner-manager.

(i) A misstatement is a discrepancy between a reported amount, classification, presentation or disclosure in the financial statements and the amount, classification, presentation or disclosure required by the applicable financial reporting framework. Misstatements may be the result of fraud or error.

If the auditor expresses an opinion on whether the financial statements present fairly, in all material respects, the state of affairs of the entity, or whether they give a true and fair view of it, misstatements will also include those unrecorded adjustments to amounts, classifications, presentation or disclosures. information that, in the auditor's judgment, is necessary to enable the financial statements to be presented fairly, in all material respects, or to give a true and fair view;

(j) The underlying assumption relating to the responsibilities of management and, if relevant, those charged with governance on which the audit is based is the assumption that management and, if appropriate, those charged with governance are aware and confirm that they have the following responsibilities, which are of fundamental importance for conducting an audit in accordance with International Standards on Auditing, that is, they are responsible:

(i) for the preparation of the financial statements in accordance with the applicable financial reporting framework, including, where appropriate, their fair presentation;

(ii) the operation of internal control as management and, where appropriate, those charged with governance determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error;

(iii) providing the auditor with:

a. access to all information known to management and, where appropriate, those charged with governance that is relevant to the preparation of financial statements, such as accounting data, records and information on other matters;

b. additional information which the auditor may request from management and, if appropriate, those charged with governance for the purposes of the audit;

c. Unlimited ability to interact with persons within the entity from whom the auditor considers it necessary to obtain audit evidence.

Where a fair presentation framework is used, paragraph (i) above may be worded as follows: “for the preparation and fair presentation of financial statements in accordance with the financial reporting framework” or “for the preparation of financial statements that give a true and fair presentation in accordance with financial reporting framework".

The reference to "underlying assumption" also implies "underlying assumption relating to the responsibility of management and, if appropriate, those charged with governance, on which the audit is based".

(k) Professional judgment is the use of appropriate knowledge, experience and skill in the context of auditing, accounting and ethical standards in making informed decisions about the appropriate course of action in the circumstances of a particular audit engagement.

(l) Professional skepticism - An attitude that involves the auditor questioning information, being alert to conditions that may indicate possible misstatement due to fraud or error, and critically evaluating evidence.

(m) Reasonable assurance in the context of an audit of financial statements is high - a degree of assurance, but not absolute assurance.

(n) Risk of material misstatement is the risk that a material misstatement has been made in the financial statements prior to the commencement of the audit. Risk has two components, which are described at the level of financial statement assertions as follows:

(i) inherent risk is the exposure of an assertion to the presentation and disclosure of account balances, types of transactions, or disclosures to misstatement that could be material, individually or when combined with other misstatements, ascertained before any relevant controls have been considered;

(ii) control risk is the risk that a misstatement that may be contained in an assertion about account balances, types of transactions or disclosures and that could be material, individually or when aggregated with other misstatements, will not be prevented in a timely manner, or identified and corrected by the organization's appropriate controls.

(n) Those charged with governance means the person(s) or entity(ies) (for example, the trustee) who are responsible for overseeing the strategic direction of the entity and have responsibilities related to holding the entity accountable. These responsibilities include overseeing the preparation of financial statements. In some entities in some jurisdictions, those charged with governance may include representatives of management, such as executive directors who are members of the governing board of a private or public sector entity, or an owner-owner.

Requirements

Ethical Requirements Relating to an Audit of Financial Statements

14. The auditor shall comply with relevant ethical requirements, including independence requirements, relating to the conduct of an audit of financial statements (Ref: Para. A14–A17).

Professional skepticism

15. The auditor should plan and perform the audit with professional skepticism, recognizing that circumstances may exist in which the financial statements are materially misstated (see paragraphs A18–A22).

Professional judgment

16. In planning and performing an audit of financial statements, the auditor is required to exercise professional judgment (Ref: Para. A23–A27).

Sufficient Appropriate Audit Evidence and Audit Risk

17. To obtain reasonable assurance, the auditor must obtain sufficient appropriate audit evidence that reduces audit risk to an acceptably low level and, therefore, enables the auditor to draw reasonable conclusions to support the auditor's opinion (see paragraphs A28–A52).

Compliance with International Standards on Auditing relevant to a particular audit engagement

18. The auditor should comply with all International Standards on Auditing that are relevant to the particular audit engagement. An ISA is relevant to a particular audit engagement if that standard is already in effect and the circumstances addressed by that standard exist (see paragraphs A53–A57).

19. To understand the objectives of a standard and to apply its requirements appropriately, the auditor must understand the text of that standard as a whole, including its application guidance and other explanatory material (see paragraphs A58–A66).

20. If the auditor has not complied with all the requirements of this ISA and all other ISAs relevant to a particular audit, the auditor may not claim compliance with International Standards on Auditing in his auditor's report.

Purposes stated in each ISA

21. In order to fully achieve all of the auditor’s objectives, the auditor should use all of the objectives stated in specific significant ISAs, taking into account the interrelationships between individual standards, in planning and performing the audit, so that (see paragraphs A67–A69):

(a) determine whether additional audit procedures, in addition to those specified in the ISAs, are necessary to achieve all of the objectives stated in the International Standards on Auditing (Ref: Para. A70);

(b) evaluate the appropriate audit evidence collected for sufficiency (Ref: Para. A71).

22. Subject to paragraph 23, the auditor shall comply with each individual requirement of a particular Standard unless, in the circumstances of a particular audit:

(a) that entire standard is not significant;

(b) the specific requirement is not significant because it is conditional and there is no corresponding condition (see paragraphs A72–A73).

23. In exceptional circumstances, the auditor may find it necessary to depart from a significant requirement of a particular Standard. In such circumstances, in order to achieve the objective of this requirement, the auditor should perform alternative audit procedures. The auditor may need to derogate from a significant requirement only when that requirement is to perform a procedure and, in the circumstances of the particular engagement, that procedure is not effective in achieving the objective of that requirement (Ref: Para. A74).

Goal not achieved

24. If the auditor is unable to achieve one or another of the objectives provided for in the relevant standard, he should evaluate whether this is not an obstacle to his achievement of the main objectives of the auditor, which, in turn, requires him, in accordance with International Standards on Auditing, to modify the auditing opinion or refuse to further perform the audit (if the possibility of refusal is provided for by applicable laws or regulations). Failure to achieve a goal is serious enough to require documentation in accordance with ISA 230*(4) (see paragraphs A75–A76).

Application guide and other explanatory materials

Audit of financial statements

Audit Scope (Ref: Para. 3)

A1. The auditor's opinion on the financial statements concerns whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. This opinion is typical for all the facts of the audit of financial statements. Thus, the auditor's opinion does not confirm, for example, the future viability of the entity or how effective and efficient management's efforts in the conduct of the entity's affairs have been. However, in some jurisdictions, applicable laws or regulations may require the auditor to express opinions on certain other matters, such as the effectiveness of internal controls or the consistency of presentation of information in a separate management report and in the financial statements. Although ISAs contain requirements and guidance on these matters, to the extent that these matters are relevant to the formation of an opinion on financial statements, the auditor will have to perform additional work if he is required to perform additional duties and express such opinions.

Preparation of Financial Statements (Ref: Para. 4)

A2. The responsibilities of management and, where appropriate, those charged with governance in relation to the financial statements may be established by law or regulation. However, the scope of such duties or the way they are described may vary from jurisdiction to jurisdiction. Despite these differences, the fundamental assumption of conducting an audit in accordance with International Standards on Auditing is that management and, where relevant, those charged with governance, recognize and understand that they are responsible for:

(a) for the preparation of the financial statements in accordance with the applicable financial reporting framework, including, where appropriate, their fair presentation;

(b) such internal control as management and, where appropriate, those charged with governance determine as necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error;

(c) providing the auditor with:

(i) access to all information known to management and, where appropriate, those charged with governance that is relevant to the preparation of the financial statements, such as accounting data, records and information on other matters;

(ii) additional information that the auditor may request from management and, if appropriate, those charged with governance for the purposes of the audit;

(iii) unrestricted communication with persons within the entity from whom the auditor determines it is necessary to obtain audit evidence.

A3. The preparation of financial statements by management and, where appropriate, those charged with governance, requires:

Determining the applicable financial reporting framework, taking into account any relevant laws or regulations;

The actual preparation of financial statements in accordance with this concept;

Inclusion of a comprehensive description of this concept in the financial statements.

The preparation of financial statements requires management to exercise judgment in making estimates that would be reasonable in the circumstances and to select and apply appropriate accounting policies. These judgments are made in the context of the applicable financial reporting framework.

A4. Financial statements may be prepared in accordance with a financial reporting framework designed to satisfy:

General financial information needs of a wide range of users (such as "general purpose financial reporting");

The financial information needs of specific users (such as "special purpose financial statements").

A5. The relevant applicable financial reporting framework often includes either financial reporting standards established by an appropriately authorized or recognized standards setting organization, or statutory or regulatory requirements. In some cases, the financial reporting framework may include both financial reporting standards set by an appropriately authorized or recognized standards setting organization and statutory or regulatory requirements. Guidance on the application of the applicable financial reporting framework may be found elsewhere. In some cases, the relevant applicable financial reporting framework may include such other sources, or may even consist only of such sources. These other sources may include:

Relevant legal or ethical requirements, including laws, regulations, court decisions, as well as documents reflecting the obligation to comply with professional ethics in the field of accounting and reporting;

Analytical materials in the field of accounting and reporting that have a different legislative level and are issued by standards development organizations, as well as professional associations and state regulatory bodies;

Controversial materials of various legal levels on the most pressing issues of accounting and reporting, published by standards development organizations, as well as professional associations and state regulatory bodies;

Widely recognized and most commonly used professional practices, both sectoral and general;

Professional literature on accounting and reporting.

In the event of a conflict between a financial reporting framework and sources from which advice on its application can be obtained, or directly between sources that actually describe this financial reporting framework, the source of the highest legal level has the greatest force.

A6. The form and content of financial statements are determined by the requirements of the applicable financial reporting framework. Although the concept cannot describe in detail the accounting and disclosure of information for all transactions or events, it usually contains sufficiently broad principles, based on which it is possible to develop and apply such an accounting policy that is consistent with the basic concepts underlying the requirements of this concept.

A7. Some financial reporting frameworks are fair presentation concepts while others are compliance concepts. Those financial reporting frameworks that primarily include financial reporting standards developed by a body recognized or authorized to set standards for entities to use in preparing general purpose financial statements often have the goal of achieving fair presentation, such as International Financial Reporting Standards (IFRS) issued by International Financial Reporting Standards Board (IASB).

A8. In addition, the requirements of the applicable financial reporting framework also determine the list of documents that make up a complete set of financial statements. In many cases, the concept provides that financial statements should provide information about the financial position, financial performance and cash flows of the organization. For such concepts, a complete set of financial statements would include a balance sheet; income statement, statement of changes in equity, statement of movements Money and related notes. For some other financial reporting frameworks, a complete set of financial statements may consist of only one single financial statement and related notes:

The International Public Sector Financial Reporting Standard (IPSAS) Cash Based Financial Reporting, issued by the International Accounting Standards Board for Public Sector Entities, for example, states that when a public sector entity prepares financial statements in accordance with this IPSAS main financial statement is the statement of cash receipts and payments;

Other examples of a single financial statement, each of which will include appropriate notes:

Profit and loss statement or statement of performance;

Retained earnings statement;

Cash flow statement;

Statement of assets and liabilities that does not include equity;

Statement of changes in equity;

Report on revenue and expenses;

Report on the results of activities by types of products.

A9. ISA 210*(5) is a document that establishes requirements and contains guidance on how to determine the acceptability of a particular applicable financial reporting framework. Special cases where the financial statements are prepared in accordance with the special purpose framework are discussed in ISA 800*(6).

A10. In view of the critical importance of the underlying assumptions to the audit, before accepting an engagement proposal, the auditor needs to obtain confirmation from management and, where appropriate, from those charged with governance that they acknowledge and understand that they have the responsibilities assigned to them. described in paragraph A2*(7).

A11. The auditor's assignment for auditing the financial statements of public sector entities may be broader than for auditing the financial statements of other entities. As a result, the underlying assumption relating to the responsibilities of management upon which an audit of the financial statements of a public sector entity is based may include additional responsibilities, such as a duty to transact and conduct business in accordance with law, regulation, or other source of law.*(8)

Form of Auditor's Opinion (Ref: Para. 8)

A12. The auditor's opinion is intended to answer the question of whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. However, the form of the auditor's opinion will depend on the relevant applicable financial reporting framework and any applicable laws or regulations. Most financial reporting frameworks include requirements related to the presentation of financial statements; for such, the financial reporting framework in accordance with the applicable financial reporting framework includes presentation.

A13. When the applicable financial reporting framework is a fair presentation framework, as is generally the case for general purpose financial statements, the opinion required by ISAs is to determine whether the financial statements are presented fairly, in all material respects, or give a true and fair view. reliable representation. When the applicable financial reporting framework is a compliance framework, the required opinion is intended to answer whether the financial statements are prepared, in all material respects, in accordance with that framework. Unless expressly stated otherwise, references to an auditor's opinion in ISAs cover both forms of an audit opinion.

Ethical Requirements Relating to an Audit of Financial Statements (Ref: Para. 14)

A14. The auditor is within the scope of relevant ethical requirements, including independence requirements, that are relevant to the conduct of an audit of financial statements. The relevant ethical requirements typically include Parts A and B of the International Accounting Standards Board's Code of Ethics for Professional Accountants (IESBA Code) relating to financial statement audits, combined with more stringent national legal requirements.

A15. Part A of the IESBA Code establishes the fundamental principles of professional conduct that are of particular relevance to the auditor's work in conducting an audit of financial statements and provides a framework for the application of these principles. The fundamental principles that the auditor is required to comply with in accordance with the IESBA Code:

(a) honesty;

(b) objectivity;

(c) professional competence and due diligence;

(d) confidentiality;

(e) professional conduct.

Part B of the IESBA Code provides illustrative examples of how these frameworks should be applied in certain situations.

A16. When conducting an audit, it is in the public interest that the auditor be independent of the organization they are auditing and therefore the IESBA Code contains such a requirement. Independence is described in the IESBA Code as encompassing both independence of thought and independence in public action. The independence of the auditor from the audited entity provides the auditor with the opportunity to form an audit opinion without being subject to outside influence that could compromise that opinion. Independence enhances the auditor's ability to act with integrity, be objective and maintain a state of professional skepticism.

A17. The audit firm's responsibilities for establishing and maintaining internal controls for its audits are described in the International Standard for Quality Control (ISQC) 1*(9) or at least as stringent in national law*(10). The firm's responsibility to implement policies and procedures designed to provide the firm with reasonable assurance that both the firm and its employees comply with relevant ethical requirements, including those related to independence, is defined in ISQC 1*(11). The engagement partner's responsibilities with respect to relevant ethical requirements are set out in SA 220. These include maintaining vigilance by observing and, as appropriate, conducting internal investigations of evidence of non-compliance with relevant ethical requirements by members of the engagement team, selecting appropriate responses when the engagement partner becomes aware of facts indicating non-compliance by members of the audit team with relevant ethical requirements, as well as the formation of a conclusion on compliance with those independence requirements that apply to a particular engagement * (12). ISA 220 recognizes that the engagement team may rely on the firm's internal quality control system in fulfilling its respective responsibilities with respect to the quality control procedures applicable to a particular engagement, unless information provided by the organization or others suggests otherwise.

Professional Skepticism (Ref: Para. 15)

A18. Professional skepticism includes maintaining vigilance regarding, for example:

Audit evidence that is inconsistent with other audit evidence collected;

Information that calls into question the reliability of documents and responses to inquiries that are intended to be used as audit evidence;

Circumstances that may indicate possible dishonest actions;

Circumstances that suggest the need for additional audit procedures in addition to those provided by International Standards on Auditing.

A19. Maintaining professional skepticism throughout the audit is necessary if the auditor, for example, is to mitigate the risks of:

Underestimation of unusual circumstances;

Excessive generalizations when drawing conclusions from audit observations;

Use of inappropriate assumptions in determining the nature, timing and extent of audit procedures and evaluating their results.

A20. Professional skepticism is essential to the critical evaluation of audit evidence. This includes the need to question conflicting audit evidence and the reliability of documents and responses to inquiries and other information obtained from management and those charged with governance. This also includes consideration of how sufficient and appropriate the audit evidence obtained may be in light of specific circumstances, for example, where there are fraud risk factors and the only document that, by its nature, does not exclude the possibility of forgery is the only evidence supporting a material amount in the financial statements.

A21. Unless the auditor has reason to believe otherwise, the auditor may consider the records and documents to be genuine. However, the auditor should consider the reliability of the information that is intended to be used as audit evidence*(13). When there is doubt about the reliability of information or when there are signs of possible fraud (for example, if the circumstances identified during the audit lead the auditor to believe that a particular document may be forged or that certain provisions of the document may have been falsified), International Standards on Auditing require from the auditor to conduct additional research and determine what changes or additions to audit procedures are necessary to resolve this situation * (14).

A22. The auditor should not be expected to disregard past experience that indicates the integrity and good faith of the entity's management and those charged with governance. At the same time, having an opinion that management and those charged with governance are honest and conscientious does not relieve the auditor of the need to maintain professional skepticism and does not allow him to be content with less persuasive audit evidence when he is seeking reasonable assurance.

Professional Judgment (Ref: Para. 16)

A23. In organizing the proper conduct of an audit, professional judgment is essential. The reason is that interpreting the relevant ethical requirements and ISAs and making the informed decisions required throughout the audit are not possible without applying relevant knowledge and experience to the facts and circumstances. In particular, professional judgment is required when making decisions on the following matters:

Materiality and audit risk;

The nature, timing and extent of audit procedures used to meet the requirements of International Standards on Auditing and the collection of audit evidence;

Assessing whether sufficient appropriate audit evidence has been obtained and whether additional steps need to be taken to achieve the essential objectives of the International Standards on Auditing and thus the fundamental objectives of the auditor;

Evaluating management's judgment in applying the relevant applicable financial reporting framework for the entity;

Preparing conclusions based on the audit evidence collected, such as evaluating the reasonableness of accounting estimates made by management in preparing the financial statements.

A24. A distinctive feature of the professional judgment that is expected of an auditor is that it is produced by an auditor whose professional training, qualifications, in themselves, already contribute to the development of the skills and abilities necessary for the formation of reasonable judgments.

A25. The exercise of professional judgment in any particular case is based on the facts and circumstances known to the auditor. Consulting on difficult or controversial issues during the course of the audit, both within the audit team and with the participation of members of the audit team and other professionals at the appropriate level within or outside the firm, as required by ISA 220*(15), is intended to help the auditor in making informed and reasonable judgments.

A26. The resulting professional judgment can be assessed on the basis of whether it reflects the competent application of auditing and accounting principles, and whether it corresponds and is consistent with the specific facts and circumstances known to the auditor up to the date of the auditor's report.

A27. Professional judgment should be applied throughout the audit. It must also be properly documented. In this regard, the auditor is required to prepare audit documentation that is sufficient to enable an experienced auditor not previously involved in a particular audit to understand the significant professional judgments that were made in reaching conclusions on significant matters that arose during the course of the audit. audit*(16). Professional judgment cannot be used to justify decisions that are not otherwise supported by the facts and circumstances of a particular audit or sufficient appropriate audit evidence.

Sufficient Appropriate Audit Evidence and Audit Risk (Ref: Para. 5 and 17)

Sufficiency and Appropriateness of Audit Evidence

A28. Audit evidence is required to substantiate the auditor's opinion and conclusion. By their nature, they are cumulative in nature and are mainly obtained as a result of the application of audit procedures during the audit. However, they may also include information obtained from other sources, such as previous engagements (provided that the auditor has determined that there have been no changes since the previous engagement that could affect its relevance to the current engagement*(17)) or internal quality control procedures for the purposes of reviewing proposals from new clients and continuing relationships with existing clients. In addition to other sources inside and outside the entity, an important source of audit evidence is the entity's accounting records. In addition, it is possible that information that can be used as audit evidence has already been prepared by the organization's internal staff or external consultants hired by the organization. Audit evidence includes both information that supports and supports management's assertions and any information that contradicts those assertions. In addition, in some cases, even the absence of information (for example, management's refusal to provide requested data) is used by the auditor and, therefore, also constitutes audit evidence. For the most part, the auditor's job in forming an audit opinion consists of obtaining and evaluating audit evidence.

A29. The sufficiency and appropriateness of audit evidence are interrelated. Sufficiency is a measure of the amount of audit evidence. The amount of audit evidence required depends on the auditor's assessment of the risks of misstatement (the higher the assessed risks, the more audit evidence is likely to be needed), as well as the quality of such audit evidence (the higher the quality, the less it will be needed). However, obtaining more audit evidence will not be able to compensate for its poor quality.

A30. Appropriateness is a measure of the quality of audit evidence; that is, their relevance and reliability to support the conclusions on which the auditor's opinion is based. The reliability of audit evidence is influenced by its source and nature, and depends on the specific circumstances in which the evidence is obtained.

A31. Whether sufficient appropriate audit evidence has been obtained to reduce audit risk to an acceptably low level and thereby enable the auditor to draw reasonable conclusions on which to base an appropriate audit opinion is a matter of professional judgment. Additional requirements and further guidance on how the auditor must gather sufficient appropriate audit evidence throughout the audit in ISA 500.

Audit risk

A32. Audit risk is directly related to the risk of material misstatement and the risk of detection. The risk assessment is based on the audit procedures designed to obtain the information necessary for this purpose and the audit evidence collected throughout the audit. Risk assessment is more a matter of professional judgment than an issue that can be accurately measured.

AZZ. For the purposes of ISAs, audit risk does not include the risk that the auditor may express an opinion that the financial statements are materially misstated when they are not. This risk is usually negligible. In addition, audit risk is a purely technical concept related to the audit process itself; it does not cover the auditor's business risks, such as the risks of loss from litigation, negative press coverage, or other events arising from an audit of financial statements.

Risks of material misstatement

A34. Risks of material misstatement can exist at two levels:

At the level of financial statements as a whole;

At the assertion level for types of transactions, account balances and disclosures.

A35. Risks of material misstatement at the financial statement level as a whole refer to those risks of material misstatement that extend to the financial statements as a whole and potentially affect a range of assertions.

A36. The risks of material misstatement at the assertion level are assessed to determine the nature, timing and extent of further audit procedures necessary to obtain sufficient appropriate audit evidence. This evidence enables the auditor to express an opinion on the financial statements at an acceptably low level of audit risk. To solve the problem of assessing the risks of material misstatement, auditors use different techniques. So, for example, in order to reach an acceptable level of detection risk, the auditor can use modeling, in which the general relationships between the individual components of audit risk will be presented in mathematical terms. Some auditors find such modeling useful at the planning stage of audit procedures.

A37. The assertion-level risks of material misstatement have two components: inherent risk and control risk. Inherent risk and control risk are organizational risks; they exist independently of the audit of the financial statements.

A38. The inherent risk for some assertions and their corresponding types of transactions, account balances and disclosures is greater than for others. For example, it may be higher for complex calculations or for accounts consisting of amounts derived from estimates that are subject to significant estimation uncertainty. Inherent risk can also be influenced by external circumstances that give rise to business risks. For example, as a result of the development of new technologies, a product may become obsolete, which will lead to the fact that its reserves may be overestimated. The inherent risk associated with a particular assertion may also be influenced by those factors in the organization and its environment that relate to some or all types of transactions, account balances or disclosures. Such factors may include, for example, insufficient working capital to continue operations or a decline in an industry, characterized by a high number of bankruptcies among organizations in the industry.

A39. Control risk is a function of the effectiveness of the design, implementation and maintenance by management of an entity of its internal controls to address identified risks that threaten the achievement of the entity's objectives that are relevant to the preparation of the entity's financial statements. However, no matter how well internal controls are designed and implemented, they can only reduce, but not eliminate, the risks of material misstatement in the financial statements due to the inherent limitations of internal control. These include, for example, the possibility of human error and miscalculation, or the circumvention of controls as a result of collusion or poor management decision that overrides the controls. Thus, some control risk will always exist. International Standards on Auditing provide for the conditions under which the auditor must or may test the operating effectiveness of internal controls in determining the nature, timing, and extent of substantive procedures to be performed*(18).

A40. International Standards on Auditing generally do not consider inherent risk and control risk separately, but bring them together under the category of "risks of material misstatement". However, the auditor is free to evaluate inherent and control risk, either individually or in combination, depending on the auditor's preference for audit technique or methodology, as well as practical considerations. An assessment of the risks of material misstatement may be expressed in quantitative terms, such as percentages, or in non-quantitative terms. In any case, the very need for the auditor to conduct appropriate risk assessments is more important than the choice of one or another approach by which they can be made.

Detection Risk

A42. For a given level of audit risk, the appropriate acceptable level of detection risk is inversely related to the assessed risks of material misstatement at the assertion level. For example, the greater the auditor's judgment of the risks of material misstatement, the lower the detection risk that can be accepted and, therefore, the more persuasive the audit evidence required by the auditor.

A43. Detection risk refers to the nature, timing and extent of audit procedures determined by the auditor to reduce audit risk to an acceptably low level. Thus, it is a function of the effectiveness of the audit procedure and its application by the auditor. Activities such as:

Appropriate planning;

Proper inclusion of employees in the audit team;

Applying professional skepticism;

Supervision of the progress of the audit and review of the audit work performed,

help improve the effectiveness of an audit procedure and its application and reduce the chances that the auditor may select an inappropriate audit procedure, misapply an appropriate audit procedure, or misinterpret the results of an audit procedure.

A44. ISA 300*(19) and ISA 330 provide guidance and guidance on planning an audit of financial statements and the auditor's response to assessed risks. Due to the inherent limitations of an audit, detection risk can only be reduced, not eliminated. Therefore, some risk of non-detection will always exist.

Inherent Limitations of Auditing

A45. The auditor is not expected to and unable to reduce audit risk to zero and therefore cannot obtain complete certainty that the financial statements are free from material misstatement, whether due to fraud or error. The reason is that there are inherent limitations in every audit engagement, so that most of the audit evidence on which the auditor draws conclusions and forms the appropriate audit opinion is persuasive rather than conclusive. These inherent audit limitations may arise from:

The nature of financial reporting;

The nature of the audit procedures;

The need to conduct an audit within a reasonable time and at a reasonable cost.

The nature of financial reporting

A46. The preparation of financial statements involves management's judgment in applying the requirements of an entity's applicable financial reporting framework to the entity's facts and circumstances. In addition, many financial statement items involve subjective judgments or estimates, or some degree of uncertainty, in which case there may be a range of acceptable interpretations or judgments that can be made. Consequently, some financial statement items are subject to some inherent level of volatility that cannot be eliminated by applying additional audit procedures. For example, this often happens with some estimated values. However, ISAs require the auditor to pay particular attention to the reasonableness of accounting estimates in the context of the applicable financial reporting framework and related disclosures, and to qualitative aspects of the entity’s accounting practices, including indications of possible management bias*(20) .

Nature of audit procedures

A47. There are practical and legal limitations on the auditor's ability to obtain audit evidence. For instance:

There is a possibility that management or others may not be able to provide - intentionally or unintentionally - full information material to the preparation of the financial statements, or information requested by the auditor. Therefore, the auditor cannot be sure of the completeness of the information, although he has performed appropriate audit procedures in order to achieve certainty that all significant information has been obtained.

Fraud may involve complex and elaborate schemes to cover it up. Thus, the audit procedures used to collect audit evidence may not be effective in detecting intentional misstatement, such as conspiracy to falsify documentation, which may lead the auditor to perceive audit evidence as genuine when they are not. The auditor not only does not have the skills of an expert in authenticating documents, but he is not expected to have such skills.

Conducting an audit does not constitute a formal investigation into an alleged wrongdoing. Consequently, the auditor does not have the appropriate legal authority, such as the power to conduct searches, that may be necessary to conduct such an investigation.

Timeliness of financial reporting and balance between benefits and costs

A48. Problems such as difficulty, lack of time, or high cost are not in themselves a justification for the auditor to refuse to perform an audit procedure for which there is no alternative, or to settle for less persuasive audit evidence. Proper planning contributes to allocating sufficient time and resources to the audit. Despite this, the importance of information, and therefore its value, tends to decrease over time, and a balance must be struck between the reliability of information and the cost of obtaining it. This is reflected in some financial reporting frameworks (see, for example, the IASB Framework for the Preparation and Presentation of Financial Statements). Thus, there is an expectation of users of financial statements that the auditor will form an opinion on the financial statements within a reasonable time and at a reasonable cost, which means recognizing the fact that it would be impractical to attempt to cover all the information that may exist, or to exhaustively investigate every matter, based on the assumption that the information is erroneous or misused until proven otherwise.

A49. Therefore, the auditor needs to:

Plan the audit so that it is carried out in the most efficient way;

Focus more audit effort on those areas that are expected to be most likely to be at risk of material misstatement, whether due to fraud or error, and therefore focus less effort on other areas;

Use testing and other methods of studying general populations for distortions.

A50. In light of the approaches described in paragraph A49, ISAs contain requirements for organizing the planning and conduct of an audit and require the auditor, among other things:

Have a rationale for identifying and assessing the risks of material misstatement at the financial statement and assertion levels by performing risk assessment procedures and other related activities*(21);

Apply testing and other methods of studying populations in such a way as to be able to obtain reasonable justifications for forming conclusions about a particular population * (22).

Other Matters Affecting the Inherent Limitations of the Audit

A51. In the context of certain assertions or subject areas, the potential impact of inherent limitations on the auditor's ability to detect material misstatements is of particular importance. Such premises or subjects of engagement include the following:

Fraud, especially fraud involving senior management or by collusion (see also ISA 240);

Existence and completeness of related party relationships and transactions (see also ISA 550*(23));

Cases of non-compliance with laws and regulations (see also ISA 250*(24)).

Future events or conditions that may affect the going concern of the entity (see also ISA 570*(25)).

The relevant ISAs describe specific audit procedures that are designed to help mitigate the adverse effects of inherent limitations.

A52. Because of the inherent limitations of an audit, there is an inherent risk that some material misstatement of the financial statements may not be detected, even if the audit is properly planned and conducted in accordance with International Standards on Auditing. Therefore, the subsequent discovery of a material misstatement of the financial statements, whether due to fraud or error, does not, in itself, mean that the audit failed to be conducted in accordance with International Standards on Auditing. However, the existence of inherent audit limitations is no excuse for the auditor to be content with less persuasive audit evidence. Whether the auditor has performed an engagement in accordance with International Standards on Auditing is determined by the audit procedures that the auditor applied in the circumstances, how sufficient and appropriate the resulting audit evidence was, and how appropriate the auditor’s report based on the assessment was. collected evidence, in light of achieving the primary objectives of the auditor.

Conducting an audit in accordance with International Auditing Standards

Nature of ISAs (Ref: Para. 18)

A53. International Standards on Auditing, taken as a whole, provide standards for the audit work to achieve the main objectives of the auditor. International Standards on Auditing describe the primary responsibilities of an auditor, as well as other auditor activities relevant to the application of those responsibilities to specific topics.

A54. ISAs always clearly state the scope, effective date, and any specific limitations on the applicability of a standard. Except as expressly stated in the relevant standard, the auditor is permitted to apply an ISA prior to the effective date specified therein.

A55. When conducting an audit, in addition to the requirements of the International Standards on Auditing, the auditor may be required to comply with the requirements of laws or regulations. International Auditing Standards do not replace the laws and regulations that govern the audit of financial statements. If such laws or regulations differ from International Standards on Auditing, conducting an audit solely in accordance with those laws or regulations will not automatically constitute compliance with International Standards on Auditing.

A56. The auditor may also conduct an audit in accordance with both International Standards on Auditing and the auditing standards of a particular jurisdiction or country. In such cases, in addition to complying with each ISA relating to a particular engagement, the auditor may be required to perform additional audit procedures to comply with the relevant standards of that jurisdiction or country.

Features of audit in the public sector

A57. International Standards on Auditing are applicable to audits in the public sector. However, the responsibilities of an auditor in the public sector may be affected either by the mandate to conduct a specific audit, or by the responsibilities of public sector entities arising from laws, regulations, or other sources of law (such as ministerial directives, government policy requirements, or legislative authority resolutions) that may cover a broader scope than is provided for in an audit of financial statements in accordance with International Standards on Auditing. The International Standards on Auditing do not address these additional responsibilities. They can be dealt with either in documents from the International Organization of Supreme Audit Institutions or national standard-setting organizations, or in recommendations developed by governmental audit bodies.

Contents of the International Standards on Auditing (Ref: Para. 19)

A58. In addition to the objectives and requirements (requirements are described in the ISAs with the verb "shall"), each standard contains related guidance in the form of application notes and other explanatory material. It may also include introductory material that provides context relevant to the proper understanding of this International Standard and provides definitions of terms. Thus, the full text of a given standard is directly relevant to understanding the objectives of this standard and to the proper application of its corresponding requirements.

A59. Where necessary, application notes and other explanatory material provide further explanation of the relevant requirements of a particular standard and provide guidance on how to implement them. In particular, you can find:

Explanatory clarifications regarding the meaning of a particular requirement and its scope;

Examples of procedures that may be appropriate in given circumstances.

While these application guidelines are not requirements in and of themselves, they are relevant to the correct application of the relevant requirements of a particular standard. These application notes and other explanatory material may also provide background information on issues covered in a particular standard.

A60. The appendices form part of the application notes and other explanatory material. The purpose and intended use of an application is explained in the text of the relevant standard or in the header and introductory part of the application itself.

A61. Introductory materials may, if necessary, contain questions such as, for example, explanations regarding:

The purpose and scope of this standard, including a description of how it relates to other standards;

The subject area of ​​this standard;

The respective responsibilities of the auditor and others in relation to the subject area of ​​this standard;

The context in which the standard is set.

A62. In a separate section of an ISA, under the heading "Definitions", descriptions of the meanings of individual terms for the purposes of International Standards on Auditing may be provided. They are intended to promote uniformity in the application and interpretation of the International Standards on Auditing and are not intended to replace definitions that may be established in laws, regulations or other sources for other purposes. Except where otherwise stated, these terms retain the same meanings throughout the International Standards on Auditing. Full list terms defined in the International Standards on Auditing is given in the Glossary of Terms published by the International Standards Board on Auditing and Assurance Engagements, as part of the Compendium of International Standards for Quality Control, Auditing and Reviews, Other Assurance Engagements, and Engagement Engagements. provision of related services. It also contains descriptions of other terms found in ISAs to help promote consistency in interpretation and translation.

A63. When appropriate, additional material relating to the audit of small and public sector entities is included in the application notes and other explanatory material in the ISAs. These supplementary materials assist in the application of the relevant requirements of the ISAs in the context of the audit of such entities. However, in these materials, the auditor's responsibility is not limited to applying and complying only with the requirements of the International Standards on Auditing.

Features of small organizations

A64. For the purposes of defining the characteristics of auditing in small entities, the term “small entity” means an entity that typically has the following qualitative characteristics:

(a) the concentration of ownership and control of the entity in the hands of a small number of persons (usually a single person, natural or legal, who owns the entity, provided that the owner has the appropriate qualitative characteristics);

(b) the presence of one or more of the following:

(i) simple or uncomplicated transactions;

(ii) simplified accounting;

(iii) a small number of activities and products offered within these activities;

(iv) few internal controls;

(v) few levels of management, with managers responsible for a wide range of controls;

(vi) a small staff, many with a wide range of responsibilities.

The above list of these qualities is not exhaustive, they may apply not only to small organizations, and small organizations do not always have all of these characteristics.

A65. The features of auditing in small organizations included in the International Auditing Standards were developed primarily with the expectation of organizations whose securities are quoted on organized markets. However, some of these features may be useful when conducting an audit of financial statements in small organizations whose securities are admitted to organized trading.

A66. In the International Standards on Auditing, the owner of a small organization who participates in the day-to-day management of the organization is referred to as the "owner manager".

Purposes Stated in Each Specific ISA (Ref: Para. 21)

A67. Each standard contains one or more objectives that link requirements to the primary objectives of the auditor. These objectives in each ISA are intended to focus the auditor's attention on the desired outcome of the International Standards on Auditing while providing guidance in sufficient detail to assist the auditor in:

Understanding what needs to be done and, if necessary, by what means to get it done;

Decide on the need for additional measures to achieve these objectives in the specific circumstances of the audit.

A68. Objectives should be understood in the context of the auditor's primary objectives, as described in paragraph 11 of this ISA. As with the primary objectives of the auditor, the ability to achieve a particular objective of the auditor is also subject to the inherent limitations of the audit.

A69. In using these objectives, the auditor should consider the relationship between the various standards within the International Standards on Auditing. The reason is that, as stated in paragraph A53, the ISAs deal in some cases with core responsibilities and in other cases with the application of those core responsibilities to specific topics. For example, this ISA requires the auditor to maintain professional skepticism; this is required in all aspects of planning and conducting an audit, but this provision is not repeated as a requirement in every standard. At a more detailed level, ISA 315 (Revised) and ISA 330 contain, among other things, objectives and requirements related to the auditor's responsibilities to identify and assess risks of material misstatement and to plan and perform further audit procedures to respond to those assessed risks, as appropriate; these objectives and requirements apply throughout the audit. A standard that addresses specific aspects of an audit (for example, ISA 540) may provide a more detailed description of how the relevant objectives and requirements of standards such as ISA 315 (Revised) and ISA 330 should be applied to the subject matter of this standard, but In this case, these goals and requirements are not repeated in the text of the standard itself. Thus, in achieving the objective set out in ISA 540, the auditor also takes into account the objectives and requirements of other relevant International Standards on Auditing.

Using Objectives to Determine Whether Additional Audit Procedures Are Necessary (Ref: Para. 21(a))

A70. The requirements of the International Standards on Auditing are designed to enable the auditor to achieve the objectives described therein and thus achieve the auditor's primary objectives. Therefore, the auditor's proper application of the requirements of the International Standards on Auditing is expected to provide a sufficient basis for the auditor to achieve his objectives. However, since the circumstances of an audit change significantly from case to case and it is not possible to cover all such circumstances in ISAs, the auditor is responsible for establishing those audit procedures that are necessary to fulfill the requirements of ISAs and achieve the auditor's objectives. Depending on the circumstances of a particular engagement, specific matters may arise that require the auditor, in order to achieve the objectives described in ISAs, to perform additional audit procedures in addition to those provided for in ISAs.

Using Objectives to Evaluate Whether Sufficient Appropriate Audit Evidence Has Been Gained (Ref: Para. 21(b))

A71. The auditor is required to use these objectives to evaluate whether sufficient appropriate audit evidence has been obtained in the context of the auditor's primary objectives. If, as a result, the auditor concludes that the audit evidence is insufficient and not appropriate, the auditor may apply one or more of the following techniques to satisfy the requirement in paragraph 21(b):

Assess whether additional appropriate audit evidence has been or will be obtained as a result of compliance with other ISAs;

Expand the scope of work on the application of one or more requirements;

Perform other procedures that the auditor considers necessary in the circumstances.

Where, in the circumstances, none of the approaches described above can be expected to be practicable or even possible, the auditor may not be able to obtain sufficient appropriate audit evidence and must, in accordance with the requirements of International Standards on Auditing, determine the impact of the situation on the auditor's report. or on its ability to complete the audit.

Compliance with significant requirements

Significant Claims (Ref: Para. 22)

A72. In some cases, a particular ISA (and therefore all of its requirements) may not be relevant in the context of certain circumstances. For example, if an organization does not have an internal audit function, nothing in ISA 610 (Revised 2013)*(26) is relevant.

A73. There may be contingent requirements within a significant ISA. Such a requirement will be significant when the circumstances stipulated by the requirement apply to the situation and the condition is met. Typically, the conditionality of a requirement will be either explicit or implicit, for example:

The requirement to modify the relevant auditor's opinion if scope limitations exist*(27) is an explicit conditional requirement;

The requirement to report to those charged with governance significant deficiencies in internal control identified during the audit*(28), which is dependent on the existence of such significant deficiencies identified, as well as the requirement to obtain sufficient appropriate audit evidence regarding the presentation and disclosure of segment information in accordance with with the applicable financial reporting framework*(29), which depends on whether such disclosures are required or permitted under that framework, are implicit contingent requirements.

In some cases, the relevant requirement may be expressed as a conditional, depending on applicable laws or regulations. For example, the auditor may be required to opt out of further participation in the audit if the option to opt out is provided for by applicable law or regulation, or the auditor may be required to take certain actions unless such action is prohibited by law or regulation. Depending on the jurisdiction, the statutory or regulatory permission or prohibition may be explicit or implicit.

Waiver (Ref: Para. 23)

A74. ISA 230 establishes requirements for documentation in those exceptional circumstances when the auditor deviates from the fulfillment of one or another significant requirement * (30). International Standards on Auditing do not require compliance with a requirement that is not relevant in the circumstances of a particular audit.

Target Not Achieved (Ref: Para. 24)

A75. The answer to the question of whether a particular objective has been achieved is the subject of the auditor's professional judgment. Such judgment takes into account the audit procedures performed to comply with the requirements of the International Standards on Auditing and the auditor's assessment of whether sufficient appropriate audit evidence has been obtained and whether additional steps should be taken to achieve the objectives described in the International Standards on Auditing, in specific circumstances of the audit. Therefore, circumstances that can lead to a situation where the goal is not achieved include those circumstances that:

Do not allow the auditor to comply with the significant requirements of a particular ISA;

Result in a situation in which the auditor may not be able to perform additional audit procedures or obtain additional audit evidence that is deemed necessary based on the application of the objectives in accordance with paragraph 21, for example, due to the limited nature of the available audit evidence.

A76. Audit documentation that complies with the requirements of ISA 230 and the specific requirements of other relevant ISAs provides evidence of the auditor's rationale for the conclusion that its principal objectives have been achieved. Although the auditor does not need to separately document (in the form of, for example, a checklist of activities) the achievement of each of his individual objectives, documenting the fact that the objective was not achieved is useful for the auditor to assess whether this fact prevented him from achieving his main objectives. goals.

______________________________

*(1) SA 320, Materiality in Planning and Performing an Audit and SA 450, Evaluation of Misstatements Revealed in an Audit.

*(2) See, for example, ISA 260 Communication with Those Charged with Governance and ISA 240 The Auditor’s Responsibilities Regarding Fraud in an Audit of Financial Statements, paragraph 43.

*(3) The International Standards on Auditing only use the term “out of engagement”.

*(4) ISA 230, Audit Documentation, paragraph 8(c).

*(5) ISA 210, Agreeing on the Terms of Audit Engagements, paragraph 6(a).

*(6) SA 800, “Special Considerations for an Audit of Financial Statements Prepared in Accordance with a Special Purpose Framework,” paragraph 8.

*(7) ISA 210, paragraph 6(b).

*(8) See paragraph A57.

*(9) ISQC 1, Quality Control in Auditing Firms Conducting Audits and Reviews of Financial Statements and Other Assurance and Related Services Engagements.

*(10) ISA 220, Quality Control in an Audit of Financial Statements, paragraph 2.

*(11) ISQC 1, paragraphs 20-25.

*(12) ISA 220, paragraphs 9-12.

*(13) ISA 500 Audit Evidence, paragraphs 7-9.

*(14) ISA 240, paragraph 13; ISA 500, paragraph 11; ISA 505 External Confirmations, paragraphs 10-11 and 16.

*(15) ISA 220, paragraph 18.

*(16) ISA 230, paragraph 8.

*(17) SA 315 (Revised) "Identifying and Assessing the Risks of Material Misstatement by Studying the Entity and Its Environment", paragraph 9.

*(18) ISA 330, Audit Procedures in Response to Assessed Risks, paragraphs 7-17.

*(19) ISA 300 "Planning an Audit of Financial Statements".

*(20) SA 540, The Audit of Accounting Estimates, Including Fair Value Measurements, and Related Disclosures and SA 700, Forming an Opinion and Reporting on Financial Statements, paragraph 12.

*(21) ISA 315 (Revised), paragraphs 5-10.

*(22) ISA 330; MSA 500; ISA 520 Analytical Procedures. ISA 530, Audit Sampling.

*(23) ISA 550 Related Parties.

*(24) ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements.

*(25) МСА 570 "Continuity of activity".

*(26) ISA 610 (Revised 2013), Using the Work of Internal Auditors, paragraph 2.

*(27) ISA 705 (Revised), Modified Opinion in the Auditor's Report, paragraph 13.

*(28) ISA 265, Communications to those charged with governance and management of deficiencies in internal control, paragraph 9.

*(29) ISA 501 "Peculiarities of Obtaining Audit Evidence in Specific Cases", paragraph 13.

*(30) ISA 230, paragraph 12.

Document overview

ISA 200 "The main objectives of the independent auditor and the conduct of an audit in accordance with international auditing standards" is given. It was put into effect on the territory of our country by order of the Ministry of Finance of Russia dated October 24, 2016 N 192n.

ISA 200 establishes the main responsibilities of the independent auditor when performing an audit of financial statements in accordance with international standards.

So, the main goals of an independent auditor are defined. The nature and extent of the audit procedures designed to make it possible for the independent auditor to achieve these goals are explained. ISA 200 contains requirements that establish the main responsibilities of the independent auditor, applicable to all types of audit. These include ethical requirements, professional skepticism, sufficient appropriate audit evidence, and audit risk.

The features of audit in the public sector and in small organizations are given.

ISA 200 comes into force on the territory of Russia from the date of its official publication. It applies from next year after entry into force.

The need to apply ISA in Russia.

Essence of ISA and their classification.

Differences between international and Russian auditing standards.

1. The need to apply ISA in Russia.

The need to carry out auditing activities in accordance with ISA in the Russian Federation is explained by the following objective and subjective reasons:

the need arises from foreign investors investing their capital in the Russian economy. To create favorable conditions for attracting Western capital, Russian companies need not only to prepare financial statements in accordance with IFRS, but also to confirm the reliability of such statements in accordance with international norms and rules;

the need for audit activity arises from the leading audit and consulting companies. This is due to the high level of competitiveness of large Western firms, the globalization of the audit business, which leads to the monopolization of the audit and consulting market and the merging of capital in the field of audit. The use of unified international standards of professional activity contributes to the efficiency of the activities of large audit firms and the improvement of the quality of their services;

the real integration of Russian audit into the international professional community, as well as the formation and development of the audit profession in Russia, increases interest in audit methodology and causes the need to master international standards and regulations on international audit practice;

the process of reforming the accounting system in Russia, the transition to IFRS has an impact on the development of audit standards. The development of generally recognized requirements and principles of accounting leads to an increase in the degree of reporting unity, which results in the possibility of applying common approaches to audit;

ISAs are of interest to the Russian accounting community. Accountants of enterprises targeting foreign investors need to be aware of the most significant features of international auditing technologies and the auditing standards that will determine their relationship with auditors as the Russian accounting and audit reform is further advanced and new ISAs are further introduced into practice.

The study and practical application of ISAs in the activities of Russian audit firms should help increase the degree of confidence on the part of foreign partners in the results of an audit conducted in Russia. Also, knowledge and effective use of ISA will increase the level of professionalism of auditors and audit firms, the quality of the audit.

1. Essence of ms and their classification.

The development of standards at the international level is carried out by the international professional association of auditors and accountants - the International Federation of Accountants (IFAC), established on October 7, 1977 with the aim of coordinating the activities of professional organizations in the field of accounting, financial reporting and auditing at the global level.

IFAC brings together professional organizations from many countries of the world, whose members are legal entities - audit, accounting and consulting organizations, as well as individuals - chief accountants, consultants, etc.

The International Association of Accountants, the International Bank for Reconstruction and Development, the American Institute of Chartered Accountants, national unions of professional audit organizations also contribute to the development.

All professions have technical and ethical standards that guide the members of the profession in carrying out their duties and managing relationships with various user groups.

"Standard" - literally "sample", i.e. a set of generally accepted requirements for the work of the auditor. Professional technical and ethical standards establish the minimum level of performance and quality expected of auditors by their clients and the public.

Unlike audit procedures, which are performed step by step and vary depending on the client's production scale, accounting system and other conditions, standards are a measure of the quality of work performed.

Auditing standards form uniform basic regulatory requirements for the quality and reliability of the audit, which provides a certain level of assurance of audit results.

As the economic situation in the country changes, the standards are periodically reviewed. On the basis of auditing standards, training programs for the training of auditors and uniform requirements for conducting examinations for the right to engage in auditing activities are formed.

The standards define the general approach to conducting an audit, the scope of an audit, the types of auditors' reports, methodological issues, and the basic principles that all members of this profession must follow, regardless of the conditions in which the audit is conducted.

The meaning of the standards is that they:

Ensure acceptable audit quality;

Contribute to the introduction of new scientific achievements into audit practice;

Help users understand the audit process;

Increase the prestige of the profession;

Make it easier for auditors to negotiate with clients;

Provide interconnection of individual elements of the audit process.

The main feature of the standards, according to their creators, is that if the consistent use of the standards by the auditor is proved in the trial, then a significant part of the responsibility can be removed from him.

There are currently 58 International Standards on Auditing Engagements and 15 Regulations on International Practice. International standards on audit engagements are divided into 5 groups:

1. international quality control standards (1-99);

2. international auditing standards with a three-digit numbering (from 100 to 999), which includes 7 subgroups of auditing standards that establish requirements for the procedure for auditing financial statements;

3. international standards for review checks, having a four-digit numbering (from 2000 to 2699), used to review reporting and interim financial information;

4. international standards for assurance engagements (from 3000 to 3699);

5. international standards for related services (from 4000 to 4699).

The Regulations on International Auditing Practice (1000-1999), International Regulations on the Practice of Reviews (2700-2999), international provisions on the practice of performing other assurance engagements (3700-3999), international regulations on the practice of providing related services (4700-4999), the purpose of which is to provide auditors with additional practical recommendations and explanations on the application of the provisions of ISAs.